GM Leads Retreat in Dow Average

The price of crude oil overshadowed a government report of moderating inflation that initially gave stocks a modest lift. Oil futures settled at $57.88 a barrel, up 90 cents on the New York Mercantile Exchange, a sharp change from the four-month low they reached Tuesday. Wednesday's government petroleum inventory numbers were weaker then expected.

GM fell $1.32, to $21.29, as concerns mounted about problems at its top supplier, Delphi, and worries about the company's ability to turn around its performance. Leaders of the United Auto Workers said the union and Delphi remain far apart on a new labor agreement and fears of a strike have spooked investors.

Broader economic news was more upbeat. The Labor Department reported that consumer prices rose 0.2 percent in October, the smallest increase in four months. In September, consumer prices rose 1.2 percent on record energy prices.

Bonds rose sharply as stocks declined, with the yield on the 10-year Treasury note falling to 4.47 percent, from 4.56 percent late Tuesday. The U.S. dollar was mixed against other major currencies in European trading. Gold prices rose.

Movers

American Express fell 85 cents, to $50.08. Its chief executive said several analysts are overestimating the company's fourth-quarter profit.